Q presentation. 10 May Nordic market leader in chicken products

Transcription

1 Q presentation 10 May 2016 Nordic market leader in chicken products 0

2 Summary of Q Strong growth in net sales, particularly in chilled products Continued strong performance in Sweden Substantial improvement in Norway driven by a recovery of the market and new customer contracts Continued price pressure and lower sales in Denmark Adjusted EBIT-margin down due to consolidation of Finnish operation Acquisition of Sødams, a Danish producer of organic and free-range chicken 1 1

3 Financial highlights, Q Sales up 8% at constant FX Adjusted EBITDA slightly up, margin down to 8.3% (8.7) Adjusted EBIT slightly up, margin down to 4.9% (5.2) Adjusted EBIT margin excl. Finnish operation was 5.7% Adjusted EPS up to SEK 0.73 (0.69) Adjusted operating cash flow down to MSEK 36.7 (100.3). -Higher capex this year and significant increase in accounts payable LY MSEK Q Q Change Net sales 1, , % -at constant FX - - 8% For comp. units 1, , % EBIT* % For comp. units* % Margin* 4.9% 5.2% - For comp. units* 5.7% 5.2% - Income for the period* % EPS*, SEK % Op. cash flow* % *Adjusted for non-comparable items of MSEK -1.1(-) in EBITDA and EBIT, and MSEK -0.9 (-) in income for the period. 2 2

4 Sweden continued strong performance Net sales up 6% Continued good market growth Strong sales increase in chilled products Successful product innovation Adjusted EBIT up 32% Higher volumes and improved mix Efficiency gains in production New section for ready-to-eat products at Valla finalized Lease contract signed for facility in south of Sweden Evaluation of investment for capacity of 20 m chickens annually MSEK Q Q Change LTM 2015 Net sales % 2, ,231.1 EBIT* % EBIT margin* 7.7% 6.2% - 7.5% 7.2% * ) Adjusted for non-comparable items in Q of MSEK -1.1(-), for LTM of MSEK -9.6 and for 2015 of MSEK

5 Denmark lower sales and income Net sales down 6% in local currency Market continued to be very competitive Price pressure in both local market and on export markets Lower EBIT and margin Lower volumes Negative price/mix MSEK Q Q Change Change local FX LTM 2015 Net sales % -6% 2, ,283.7 EBIT* % -15% EBIT margin* 5.2% 5.6% % 6.3% *) Adjusted for non-comparable items in Q of MSEK - (-), for LTM of MSEK -4.4 and for 2015 of MSEK

6 Acquisition of Sødams in Denmark A producer of organic and free-range chicken Approx. 500,000 chickens per annum Annual sales of approx. MDKK 18 Initial payment was MDKK 18 for a majority stake, with up to MDKK 43 to be paid additionally in tranches upon fulfilment of certain milestones. In line with our strategy to broaden the product portfolio and expand in the premium segment in Denmark 5 5

7 Norway substantial growth in sales and income Net sales up 32% in local currency Market recovery Retail market for chilled products grew by 22% vs weak Q Deliveries to Coop Norway Start of deliveries to Norgesgruppen EBIT up 59% in local currency Margin improved to 6.1% (4.8) MSEK Q Q Change Change local FX LTM 2015 Net sales % 32% 1, ,178.3 EBIT* % 59% EBIT margin* 6.1% 4.8% % 5.1% * ) Adjusted for non-comparable items in Q of MSEK - (-), for LTM of MSEK -4.4, and for 2015 of MSEK

8 Improvement of retail market in Norway Strong growth in Q YoY compared to a weak Q Retail market development, chilled products YoY, value* 40% 30% 34% 27% 20% 10% 0% -10% -20% -30% 13%12% 10% 8% 4% 4% 2%-2% 4% 0% -3%-2% -15% -11% -6% -7% -4%-4% -12% -21% 18% 25% *AC Nielsen 6 7

9 Finland volume growth expected in 2016 Capacity utilization still low, as expected New bird supply contracts signed New sales contracts committed Volumes will be clearly up during the course of the year MSEK Q Q LTM** 2015** Net sales EBIT* EBIT margin* -44.6% % -55.1% * ) Adjusted for non-comparable items in Q of MSEK (-), for LTM of MSEK -9.0 and for 2015 of MSEK ** ) Operations started 1 May

10 Income statement Higher depreciation due to investments in production Non comparable items of MSEK -1.1(-) in the quarter. MSEK Group (adjusted) Q Q LTM 2015 EBITDA Depreciation Amortisation Income from associates Operating income Finance cost (net) Taxes Income for the period

11 Lower cash flow Capex higher than last year due to investments in the Valla facility in Sweden and investments in Norway Cash flow last year positively impacted by a significant increase in accounts payable MSEK Q Q LTM 2015 Adjusted EBITDA* Capital expenditure Change in inventories Change in other working capital Adjusted operating cash flow * ) Adjusted for non-comparable items in Q of MSEK -1.1 (-), for LTM of MSEK and for 2015 of MSEK

12 Lower working capital Working capital of 5.5% of net sales Net debt/adjusted EBITDA declined to 2.8x from 2.9x last year Equity/assets ratio improved to 29.2% (27.9) MSEK 31 Mar Mar 2015 Inventory Receivables Payables NWC as % of sales 5.5% 6.4% Net debt 1, ,329.8 Net debt/ebitda Equity Equity/assets ratio 29.2% 27.9% 10 11

13 Summary Strong market growth and solid performance in Sweden Recovery of market in Norway, strong improvement in net sales and EBIT Continued price pressure in Denmark Volume growth expected in Finland during the year Overall, delivered on our strategy; -Organic growth in line with or above market growth -Improved operational efficiency -Acquisition in Denmark to strengthen position in premium segment 11 12

14 Q & A 13

15 Segment information by quarter Group (MSEK) Q Q Q Q Q Q Q Q Sales , ,386.3 Sales growth 1% 3% -4% -3% 3% 3% 10% 6% EBIT (Adj) EBIT margin 5.9% 4.9% 6.4% 5.2% 5.7% 5.1% 5.0% 4.9% Sweden (MSEK) Sales Sales growth 17% 15% 3% 6% 6% 5% 17% 6% EBIT (Adj) EBIT margin 5.8% 5.5% 6.9% 6.2% 9.0% 6.9% 6.6% 7.7% Denmark (MDKK) Sales Sales growth -4% 3% 3% 1% 6% -2% -3% -6% EBIT (Adj) EBIT margin 4.5% 4.2% 5.8% 5.6% 6.0% 6.5% 6.3% 5.2% 13 14

16 Segment information by quarter Norway (MNOK) Q Q Q Q Q Q Q Q Sales Sales growth -20% -20% -29% -27% -7% 5% 24% 32% EBIT (Adj) EBIT margin 9.2% 7.9% 9.0% 4.8% 3.5% 5.3% 6.7% 6.1% Finland (MEUR) Sales Sales growth EBIT (Adj) EBIT margin % -46.2% -73.6% -44.6% 14 15

17 Non-comparable items Non-comparable items in EBITDA and operating income: Q Q LTM 2015 Transaction costs Financial support to associate co Total Non-comparable items in finance net and tax effects: Tax effect on adjustments Non-comparable items in income for the period

18 Disclaimer This presentation contains various forward-looking statements that reflect management s current views with respect to future events and financial and operational performance. The words believe, expect, anticipate, intend, may, plan, estimate, should, could, aim, target, might, or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company s control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include but are not limited to the Company s ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks. The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document